CPG brands continue to face the same challenges that have been plaguing the industry for decades—trade spend, forward buying costs and the complication of data publishing— but technology is getting us closer to more accurate calculations of these costs. For now, optimizing a brand’s marketing mix remains foundational to revenue growth. But the introduction of big data, artificial intelligence and automated solutions are changing the rules of the game and introducing new ways of thinking about revenue optimization that are outside the traditional scope.
What has been clearly identified is that it is no longer enough to look at data in an isolated way to inform critical business decisions. For a CPG brand to see growth and stay relevant to retailers, it’s important that companies take a holistic approach to revenue management. It’s about driving value for the entire category by unearthing and compiling broad-view insights, rather than the traditional myopic approach that only aims to elevate one’s own brand.
The current trends in revenue optimization reveal that a paradigm shift in CPG marketing is underway. New technological advances now allow brands to exponentially increase the speed and improve the accuracy of collecting, processing and sharing data, and has the power to propel CPG companies into data-driven, profit-yielding businesses. The learnings gained as a byproduct of these intelligent platforms enrich companies by improving the collective knowledge. It’s both an exciting opportunity and a challenging undertaking. What CPG brands need to know right now is how to take action in order to stay ahead of this shifting landscape.